The process for initiating an HOA does not have to be intimidating, but some organized steps should be used.

STEP 1: Determine the need for the association. To do so, host an informal meeting with your neighbors to see if there is a real interest in or need for the association. While it is optimum for 100% of area residents to attend the initial meeting, it is not imperative that they be present at that time. This first meeting could be among just a few or all of your neighbors.

STEP 2: Check with the Dallas County Clerk’s Office to see if the developer has filed a Declaration of Covenants, Conditions, and Restrictions for your subdivision. You can reach the Dallas County Clerk’s Office at 214.653.7275, or at 509 Main Street, 2nd Floor, Dallas, Texas.

STEP 3: Contact Community Initiatives Manager, Tracie Hlavinka, at 972.230.9689. Tracie can schedule a meeting with your neighbors to clarify the necessary steps and the benefits of organizing an HOA.

STEP 4: Create bylaws and articles of incorporation to bring for consideration by all your members. Bylaws establish the procedures for the operation of the association. They create HOA rules for voting, financing, and control procedures. The articles of incorporation actually create a corporation if the association chooses to become incorporated.

Need a guideline for bylaws? Download this file_____

Need a guideline for articles of incorporation? Download this file_____

STEP 5: Once the articles of incorporation are complete, send two (2) copies and the $25 filing fee to the Secretary of State, Corporate Section, P.O. Box 13697, Austin, Texas 78711. Their phone number is 512.463.5555.

Neighborhood Associations with gross receipts of $5,000 or less per year are not required to file form 1023. These organizations are exempt automatically if they meet the requirements of I.R.S. section 501(c)(3).

In order to keep your Association tax-exempt status, you must ensure that:

• All assets are permanently dedicated to an exempt purpose. This means that, even upon assets of the corporation may to exempt purposes or groups. Dissolution of the group and all assets must be used or donated, no part of the net earnings or• Be used for the benefit of, or be distributed to, the members or officers.• No portion of the corporation’s assets or funds may be used to influence legislation, promote propaganda, or benefit specific political candidates.